Dear Customer,
Lately you have probably heard forwarders claim:
“Let’s put your mould under double-clearance tax-included service—one all-in price, we pay the duties, you just wait for delivery.”
It sounds easy and cheap, but as a mould maker we must warn you:
A mould is not a T-shirt. If customs discovers a problem, the bill can be larger than the price of the tool itself.
Please read the risks below before you decide to “save” this money.
1. Moulds hate under-valuation—one re-assessment and duty + penalty can exceed the tooling cost
- Steel injection or stamping dies usually enter the EU under HS 8456/8459 with 0–4 % customs duty, but 20 % import VAT.
- To “include tax”, forwarders often declare a USD 50 000 mould as USD 15 000—a 70 % under-value.
- Industrial moulds are inspected in >15 % of EU/US shipments. When customs re-values, you pay:
– Full VAT on the real price
– A 10 %–50 % penalty on the under-paid amount - The import VAT is issued in the forwarder’s name, so you cannot reclaim it.
Result: You have not even sampled parts, but already owe USD 8 000–20 000.
2. IP-infringement risk—your mould carries the customer’s logo or patented shape
- Cavities often carry final-product logos, patent numbers or trade marks.
- Forwarders declare the block as “unbranded steel”.
- Customs calls it “intentional concealment of IP goods”—tool seized and fine of 1–3 × value.
- The legal importer (the forwarder’s shell company) will not pay, so customs chases the consignee on the bill of lading—you.
- The EU and China now mutually enforce customs fines; your overseas subsidiary’s bank account can be frozen.
Bottom line: A destroyed tool is only the beginning; the fine can follow you home.
3. Loss of cargo control—one container, many shippers, one mistake, everybody pays
- Moulds are heavy (5–8 t) and make good “base cargo”. Forwarders love to consolidate them.
- If any co-loader under-declares or hides sensitive items, the whole container is locked.
- Detention: USD 150 / day. Ten days = USD 1 500 before you even talk to customs.
- EU/US rules: One entry, one release. You cannot pull your mould out until every item is cleared and all costs are paid.
- The forwarder’s terms say “detention shared proportionally”. You must advance money for strangers’ cargo or wait indefinitely.
Outcome: Your production line stands still while you finance other people’s problems.
4. Project delay—without compliant documents your customer will not sign-off the tool
More and more OEMs (automotive, medical, white-goods) add this clause:
“Supplier must present customs entry proving correct declaration; otherwise tool approval is withheld and no payment will be released.”
Under double-clearance:
- Entry is in the forwarder’s name, not yours.
- Value, HS code and weight are “optimised” and do not match your PO.
- You cannot prove the tool legally entered the country, so your customer refuses final acceptance.
Result: The tool is perfect, but you wait six months for the final 40 % payment.
5. Reputation & blacklist—when the forwarder collapses, you stay in customs’ microscope
March 2024: A well-known “tax-included” forwarder went bust; five EU countries froze its VAT numbers overnight.
- 200+ Chinese exporters were flagged; all future shipments drew Red Channel inspection (>50 %).
- One of our customers had used that forwarder only once. His next three tools were examined consecutively, adding 15 days each time. Idle production cost: USD 120 000.
- Once your company is linked to a disqualified importer ID, the record stays in the system for years—changing forwarder does not erase it.
Translation: You saved USD 400 freight, then paid USD 120 000 in lost output.
6. Three practical rules to protect your mould—and your balance sheet
| Scenario | Rule | One-sentence reason |
|---|---|---|
| Customer demands DDP | Insist on clearing under YOUR VAT/EORI number | You get the real C79 / 88 / Entry Summary, can reclaim VAT, and pass customer audit |
| Customer still wants “tax-included” price | Add a clause: “Any post-clearance duty, fine or delay caused by under-valuation or IP violation is borne by buyer” | Shifts unlimited liability back where it belongs |
| Forwarder promises “zero risk” | Demand three documents: ① Customs registration screenshot ② Original duty/VAT receipt ③ Insurance policy covering full penalty if mis-declared—if missing, walk away | If they cannot show, they cannot sell |
Closing
A mould is the mother of mass production. Behind one tool there may be millions of parts and tens of millions of revenue.
Risking all of that to save a few hundred dollars in freight is a bad bet.
We earn our profit through quality and on-time delivery, not through freight arbitrage.
Therefore we can afford to tell you the truth:
“Double-clearance tax-included” saves pennies today, but can cost you the project, the customer, and even your customs credit rating tomorrow.
Next time a forwarder claims “everyone does it”, please send him this letter and say:
“My mould will clear under my own number at full value.
If you cannot do that, I will pay more freight, but I will not buy future trouble.”
Thank you for your understanding and trust.
We wish your tools a smooth launch and your projects on-time approval!
If you wish to learn more about this subject, please do not hesitate to contact us. We are a Chinese leading company in the manufacture of tooling, stamping, injection molding, CNC machined parts, with low cost and RELIABLE transportation solution.
